Riverstone Q1 net profit falls 57% to RM46.7 million on higher cost of sales

MALAYSIAN glovemaker Riverstone Holdings posted a 57 per cent drop in net profit to RM46.7 million (S$13.9 million) for the first quarter ended Mar 31, 2023, from RM108.7 million in the year-ago period.

This was mainly due to higher cost of sales and lower average selling prices of healthcare gloves, the mainboard-listed company said in a regulatory filing on Monday (May 8).

Earnings per share stood at 3.15 sen for the first quarter, down from 7.34 sen in the previous year.

Revenue for Q1 fell 40.8 per cent to RM238 million, from RM402.3 million in the corresponding quarter last year.

No dividend was declared for the quarter, unchanged from the year before.

Macroeconomic headwinds – such as an oversupply of healthcare gloves, volatile raw materials and an increase in overall production costs – remain challenging for the group, it said in the bourse filing.

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Riverstone posts 62.1% fall in Q4 earnings to RM42m

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“Moving forward, we will continue to increase our exposure in customised products, such as specialised healthcare gloves, and reinvest in our clean-room gloves segment to maintain our market leadership position,” said executive chairman and chief executive Wong Teek Son.

Shares of Riverstone last traded at S$0.585 on Monday, down S$0.01 or 1.7 per cent, before the results were announced.